I know for a fact that investors have trouble on where to find ideas for stocks. You could take the Peter Lynch approach, and walk around the mall looking for stores that are busy.
While some may argue that this could work, this really limits the kind of stocks you could look for. You’d be stuck with mostly retail stocks, and you would miss out on companies that only sell to other companies.
So what can you do? Obviously keeping your eyes open will only get you so far. And there are so many stocks to choose from, literally thousands. How can you sift through the murky list of wall street stocks, at the same time dodging the value traps scattered along the way? [Tweet This]
Well I’ve taught in the past how to avoid value traps, and education instead of ignorance will help you with the analyzing. BUT, no one has time to analyze all 500 stocks on the S&P 500, not to mention the thousands of stocks on the Russell 2000 and NASDAQ.
So where can I find ideas for stocks? (Preferably in an easy way that saves me time and money?)
Find Ideas for Stocks Here
The answer to your problems is FINVIZ.com and best of all it’s free.
I use this website whenever I want to find ideas for stocks. What you do on the website is filter stocks based on a multitude of technical and fundamental parameters, and the site screens out the ones that don’t fit the set criteria.
Once you are on the home page, click on the screener tab and you will see a list of all 6,443 stocks available for purchase in the world. Next you will see three more tabs: Descriptive, Fundamental, and Technical. These tabs let you filter out stocks that are “only in the U.S.” for example, or “have a P/E < 15 and pay a dividend”.
With this tool, you can very quickly find stocks that are undervalued at their current prices. The values update everyday and you will find that they are accurate 99% of the time.
If you are looking for examples of screens that I have run in the past, you can check out my articles on the stock analysis website Seeking Alpha.
This tool will give you instant, numbers based ideas that you can narrow or widen as much as you like. I’d recommend using this tool every single time you are about to research some stocks.
Now be sure that you aren’t just blindly investing from your screens. Use the tool to get you a list of about 4 or 5 companies, then do your rigorous analysis on this final list. Instead of spending hundreds of hours for research, you can cut that time drastically.
One last feature I’ll tell you about is the ability to create a model portfolio and track it’s results. If you click on the Portfolio tab, you can create a new portfolio, save it, and see how it does as the days go on.
I hope I’ve created a lot of value for you with this tip. If you haven’t gotten on the free newsletter yet, you can sign up with the form below to get more tips from me to help with your investing. It also comes with a free eBook 7 Steps to Understanding the Stock Market, which will show you how to analyze stocks if you don’t know how yet.
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**All Rights Reserved. Investing for Beginners 2013**
**Where to Find Ideas for Stocks – Wisdom Wednesdays #13**
**Link for the magnifying glass photo found: Photo Attribution**